Will Barstool, Other Excluded Sportsbooks Ever Launch in New York?
Brett Carlsen/Getty Images. Pictured: Barstool flag.
New York online sports betting went live Saturday, so New Yorkers have a handful of sportsbook options.
So, what about those that didn’t make the initial list of nine operators approved to launch?
There’s no guarantee they’ll ever get approved or that New York will accept another round of bids, but lawmakers haven’t completely ruled it out either.
Senator Joe Addabbo of New York told The Action Network’s Darren Rovell there’s “no specific timeline” for any new bids and it could be months down the road when the state has had a chance to review what’s happened so far.
These were the unsuccessful bids:
New York had a unique bidding process. Sportsbook operators teamed up with each other to submit their bids, and had to propose what tax rate they’d accept. It ended up at 51%, much higher than neighboring New Jersey. Books also have to pay a $25M licensing fee to operate.
If the state gets to 13 operators, the tax rate drops to 35%.
Here’s where the five books stand:
Penn National Gaming had two bids in the fold, with its main bid — which was partnered with Fanatics — coming in through the Barstool Sportsbook, and the second through theScore, which the company acquired just prior to the bids being submitted.
Barstool President Dave Portnoy spoke about the rejected bid on his podcast, “The Dave Portnoy Show with Eddie & Co.“, and seemed to have mixed feelings about the result because of the state’s upcoming 51% tax rate on sportsbooks.
“Would I rather be in New York than not? Yes. (But) If you’re going to pick a state not to get into because of the tax, like, ‘OK, this is (fine). No one’s making money,’ ” Portnoy said.
theScore will likely be added to the initial group when it comes time to submit another bid, assuming it doesn’t merge its tech and platform with Barstool when the acquisition is final this year.
With media mogul and fellow New Yorker Jay-Z stepping in as the vice chairman of Fanatics on its initial application, the company is making waves before it’s even launched a sports betting product.
The sports-merchandising giant, valued at $18 billion, has had a huge customer base for years.
It was reported in November that Bet365 was the closest of the denied sportsbooks to getting a bid. With the nine accepted books entering as groups of two separate bids, Bet365 was the lone bid to get into the final round of consideration with just one name attached to it.
If New York ever does add more operators, Bet365 would likely be a strong contender. It operates a retail sportsbook at Resorts World Catskills Casino.
Despite the name behind it, FOX Bet isn’t one of the bigger sportsbooks on the market at the moment.
For more updates on New York and other states that will legalize sports betting this year and beyond, check out our legalization tracker for news as it happens.